I. Deposit Accounts &II. Loan Accounts

I. Deposit Accounts:-

1. Fixed Deposit account

2. Recurring Deposit account

3. Savings Bank account

4. Current account

The above accounts are opened by depositing our funds into the bank with which we are opening the account.

II.Loan accounts:-

When we receive funds from a bank as a loan or advance account will be opened by the lending bank in our name.

Savings Bank Accounts:-

Before we talk about Fixed Deposit accounts, Recurring Deposit accounts, Current accounts and Loan accounts, let us see what is a Savings Bank account.

When we think of “Bank Account” the first thing that comes to our minds is “Saving”.

The normal account we open with a bank is a Savings Bank Account. Nowadays when we are employed in any firm the first thing we have to do is to open a Savings Bank account. Employers nowadays pay their employees by means of a bank account, unlike in the past when salaries to employees had been paid in Cash.

In the past, funds used to be sent by the parents to their wards studying in schools and colleges out of their home-towns, by means of Postal Money Orders. Nowadays, students are opening Savings Bank accounts with banks for getting funds for their school or college expenses from their parents.

Even when we receive Loans from a bank we will have to open a Savings Bank accounts.

Banks in India are governed by Reserve Bank of India, which has stipulated certain norms for opening accounts, for various reasons.

As per RBI guidelines banks must Know their Customers. Therefore RBI has introduced “Know Your Customer” norms/KYC Norms for banks for opening accounts. Banks are not supposed to open accounts for unknown persons. This rule is stipulated by RBI for the benefit of the customer and also for the Banks and the Government. The idea behind this rule is that “black money” or unaccounted funds should not be blocked in “benami” accounts, for evading various types of taxes, like Income Tax, Wealth Tax etc.

Therefore, “Introduction” of a new customer has been made a statutory requirement for opening an account with a bank. That means an existing good customer must introduce the new customer. Introduction does not simply mean formal verbal, telephonic or personal introduction and the introduction must be in writing and with the signature of the introducer. A customer of a bank is identified mainly by the specimen signature apart from other identities. Therefore signature is very important while opening a bank account and we must sign in the same way and our signature must be unique and it must be difficult to forge.

Apart from Introduction by existing customer, certain other proofs are also required for opening a bank account. Proof of Identity of the person and proof of address are required. For proof of Personal Identity an identity card with the photo of the person is to be submitted. The Photo Identity can be any one of the following:

1. A valid Passport.

2. Income Tax PAN Card.

3. Voter Identity Card.

4. Valid Driving License.

5. Photo Identity Card Issued by employers, subject to the satisfaction of the bank.

For Address Proof any one of the following can be submitted:
1. Telephone Bill.

2. Electricity Bill.

3. Ration Card.

4. Propery Tax Book/Receipt.

5. Letter from employers, subject to the satisfaction of the bank.

6. Letter from any recognized Public Authority.

7. Registered Sales/Lease Deeds.

Savings Bank Accounts can be opened in the name of an individual or in the joint names of two or more individuals. Savings Bank Accounts can also be opened and operated by the minors, themselves, provided they have completed ten years of age and have the capacity of understanding.There are other types of Savings Bank accounts also.

The amount required for opening the account and the minimum balance to be maintained in savings bank accounts, without the facility of cheque books is Rs.100/ and where cheque books are issued, a minimum balance of Rs.500/- has to be maintained in respect of Rural & Semi Urban branches. In respect of Urban &Metro branches the minimum balance will be Rs 500 without issue of cheque books and Rs 1000 with cheque facility. Nowadays, banks are offering "Automatic Teller Machine" or ATM facility. And also Internet Banking has been facilitated in many banks. We will see in detail about them shortly.

To sum up, for opening of a Savings Bank account with a bank, we need the following:-

Introduction. Person already having an account with the bank to accompany us. Or the letter of Introduction or the signed for Introduction in the Account opening form by our employer.

Personal Identity Proof. Original and the Photo copy. Photo copy will be kept by the bank and the original will be returned after verification.

Address Proof. Original and the Photo copy. Photo copy will be kept by the bank and the original will be returned after verification.

Opening Cash, depending upon the type of account and category of the bank branch.